The $53 billion merger between Anglo American and Teck Resources marks an important development in the global mining industry, particularly in the copper sector. The new entity, named Anglo Teck, will rank among the top five copper producers, with an annual output of 1.35 million tons.
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Anglo shareholders will own approximately 62% of the company in this merger, while Teck shareholders will own 38%. The operational headquarters of Anglo Teck will be located in Canada, but the company will remain listed in London. The merger brings together valuable assets, including major copper mines in Chile and other locations, as well as businesses in iron ore, zinc, and crop nutrients. Most importantly, more than 70% of Anglo Teck’s future revenues are projected to come from copper.1-3
The rationale for this merger is rooted in strategic alignment. Both companies have strong copper resources and operate in the rich Chilean copper belt. The plan is to combine Teck’s Quebrada Blanca mine with Anglo’s Collahuasi operations.
This merger is expected to yield cost savings through the shared use of infrastructure and more efficient project development. Analysts believe the merger can save over $800 million annually within four years of completion. The boards of both companies have unanimously approved the merger, aiming to compete on a global scale with competitors.1-3
Why Copper Matters in the Global Economy
Copper is the backbone for global electrification and decarbonization efforts. Its excellent electrical conductivity makes clean technologies essential, such as electric vehicles (EVs), batteries, solar panels, wind turbines, and power grids.
Around 70% of the world's copper production goes into electrical and electronic applications, including high-voltage transmission lines, renewable energy systems, and smart infrastructure.4,5
The shift to renewable energy is further increasing the demand for copper. Renewable energy technologies need significantly more copper than traditional power systems. Solar and wind installations require a lot of cabling, transformers, and other parts that depend on copper for their efficiency. The growth of EVs is also driving this demand as each EV requires three to four times more copper than vehicles with internal combustion engines, including for charging infrastructure.4,5
As the transition to green energy accelerates, the global copper demand could double by 2035. This surge is already influencing the strategies of mining companies.
Major mining firms are working to secure future copper supplies through acquisitions and mergers. They are focusing on exploring new copper reserves and building mines while moving away from coal and toward essential transition metals.2,4
Strategic Implications for the Mining Sector
The Anglo–Tek merger changes the competitive dynamics of global mining. The new company will manage a range of established and emerging copper mines, which will help it meet the growing demand for copper over the coming years.
This consolidation creates opportunities for better operations, especially in the Chilean copper belt, where both companies have nearby licenses.
With planned infrastructure like a conveyor system linking Collahuasi’s high-grade ore to Quebrada Blanca’s processing facilities, production gains could rival those of Escondida, the world’s current largest copper mine.6
Investors expect competitive companies to consider mergers or expand projects to compete with Anglo Teck or avoid losing important assets in key copper markets. Mid-tier miners may also look for mergers or partnerships with downstream partners to maintain market access.7
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Anglo Teck’s increased financial firepower and technical resources position it to accelerate the development of brownfield and greenfield projects. This leads to better use of funds and helps the company manage challenges from fluctuating commodity prices more effectively.1
Risks and Challenges
Despite the strategic opportunity, there are still significant risks involved. One major challenge is Teck’s operational issues at Quebrada Blanca, which include cost overruns, delays, and complicated permitting processes that affect timelines.
While the merger promises operational synergies, merging two large and culturally different organizations comes with risks. It involves aligning management structures and securing regulatory approvals. Anglo American has also recently sold off or reduced stakes in some key assets as part of a strategy to focus on core commodities.6,8
On the operational front, any major copper producer faces the threat of environmental, labor, and geopolitical disruptions. In Chile, Peru, and Canada, where Anglo Teck operates, each country has its own distinct regulations and permitting processes that are becoming more stringent as communities demand improved environmental and social practices.
Issues like past mining accidents, water shortages, and local opposition can lead to delays and increased project costs. Market analysts have also raised concerns about overpaying for growth and the risk of cost inflation, especially as companies explore less accessible, lower-grade deposits.8,9
Geopolitical and Regulatory Factors
The Anglo–Tek merger was influenced by geopolitical and regulatory factors throughout the process.
The Canadian government reviewed the deal under the Investment Canada Act, which examines if major transactions align with national interests. Canadian officials sought commitments around local employment, executive representation, and ensuring that control of strategic mineral assets would remain compatible with national goals.
Anglo–Tek agreed to set its headquarters in Vancouver and make significant investments in Canada's mining sector, including supporting junior mining and co-creating a Global Institute for Critical Minerals Research and Innovation with the Canadian government.1
South Africa, where Anglo American has deep historical roots and substantial operations, also features prominently in regulatory discussions. The company has promised to have South African representation in its leadership and will keep an office in Johannesburg.
Regulatory filings affirm that the merged company will comply fully with empowerment and mining licensing rules, while also pledging support for local procurement and investment funds meant to benefit South African junior miners and the broader economy.1
The Bigger Picture: The Copper Arms Race
The Anglo-Teck deal highlights copper's growing importance in the global market. As countries and companies focus on energy security and reducing carbon emissions, copper has become more than just a geopolitical asset. Miners are shifting from coal, oil, and gas to copper, nickel, and lithium due to the increasing demand for electrification and digitalization trends.
No single company can solve the pending copper supply shortage, but the Anglo-Teck merger should catalyze further deals and capital investments.
Management across the sector now faces pressure to grow, improve efficiency, and adjust their portfolios. The focus is on securing access to the essential metals needed for future technologies.
For countries and industries committed to decarbonization, the actions taken by miners like Anglo-Teck will affect the energy transition and the availability of clean technology.
References and Further Reading
- Teck and Anglo American to combine through merger of equals to form a global critical minerals champion. (2025). Teck Resources. https://www.teck.com/news/news-releases/2025/teck-and-anglo-american-to-combine-through-merger-of-equals-to-form-a-global-critical-minerals-champion
- Denina, C. (2025). Anglo American, Teck Resources to merge in second-largest mining deal ever. Reuters. https://www.reuters.com/world/uk/anglo-american-teck-resources-merge-second-largest-mining-deal-ever-2025-09-09/
- Jamasmie, C. (2025). Anglo American, Teck strike $53B merger in decade’s top deal. Mining.com. https://www.mining.com/anglo-american-teck-strike-merger-in-decades-top-mining-deal/
- On Copper Demand. (2022). International Copper Association. https://internationalcopper.org/resource/on-copper-demand/
- Copper - The Backbone of Electrification and Green Transition. ETI Baltus. https://www.etibaltus.lt/media-center/switch-to-sustainable/copper-the-backbone-of-electrification-and-green-transition
- Anglo-Teck $53B merger may topple Escondida as copper leader. (2025). Mining.com. https://www.mining.com/anglo-teck-53b-merger-may-topple-escondida-as-copper-leader/
- Zadeh, J. (2025). Anglo Teck Merger Creates $60 Billion Global Mining Powerhouse. Discovery Alert. https://discoveryalert.com.au/news/anglo-teck-merger-global-mining-impact-2025/
- Fitch Revises Anglo American's Outlook to Negative; Affirms at 'BBB+' on Teck Merger. (2025). Fitch Ratings. https://www.fitchratings.com/research/corporate-finance/fitch-revises-anglo-american-outlook-to-negative-affirms-at-bbb-on-teck-merger-11-09-2025
- Tiwari, P. (2025). Copper’s Impact on Renewable Energy Projects: What You Need to Know. MetalBook. https://www.metalbook.com/blogs/coppers-impact-on-renewable-energy-projects-what-you-need-to-know/
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